FED Revises and Extends Capital Assessments and Stress Testing Reports
FED recently adopted two proposals to revise and extend, for three years, the monthly, quarterly, and annual capital assessments and stress testing reports (FR Y-14A/Q/M). The revisions are applicable with as of dates ranging from December 31, 2019 to December 31, 2020. The proposals involved incorporation of revisions related to both the current expected credit loss (CECL) methodology and the non-CECL methodology into the FR Y-14A/Q/M reports. FED has also published the reporting forms and instructions for FR Y-14A/Q/M (OMB No. 7100-0341).
FED, on July 31, 2019, had published two proposed notices in the Federal Register on the extension, with revision, of the Capital Assessments and Stress Testing Reports. The proposal was to implement a number of changes to certain schedules of the FR Y-14A, FR Y-14Q, and FR Y-14M reports. The proposed revisions consisted of deleting or adding items, adding or expanding schedules or sub-schedules, and modifying or clarifying the instructions for existing data items, primarily on the FR Y-14Q and FR Y-14M reports. Most of the proposed changes were intended to reduce reporting burden for firms, to clarify reporting instructions and requirements, to address inconsistencies between the FR Y-14 reports and other regulatory reports, and to account for revised rules and accounting principles. A limited number of proposed revisions would have modified the reporting requirements and added or expanded sub-schedules to improve the availability and quality of data to enhance supervisory modeling and for use in DFAST.
The proposed revisions were also meant to address the revised accounting for credit losses under the FASB Accounting Standards Update (ASU) No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and implement the CECL accounting methodology across all of the FR Y-14 reports. The proposed changes to the FR Y-14 reports paralleled the related changes to the Consolidated Financial Statements for Holding Companies (FR Y-9C) for CECL, as appropriate. The proposed reporting changes related to CECL were also consistent with the revisions indicated in the interagency final rule that incorporated the CECL transition.
Related Links
Keywords: Americas, US, Banking, Stress Testing, FR Y-14, CECL, Dodd Frank Act, DFAST, Reporting, CCAR, FR Y-9C, Financial Instruments, IFRS 9, FED
Featured Experts

Laurent Birade
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.

Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.

James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Previous Article
HKMA Publishes List of Systemically Important Banks in Hong KongRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.